Fitch affirms McClatchy

Fitch Ratings said it affirmed the issuer default rating of the McClatchy Co. at B-, along with its senior secured credit agreement at B with a recovery rating of RR3, senior secured notes at B with a recovery rating of RR3 and senior unsecured notes/debentures at CC with a recovery rating of RR6.

The outlook is stable.

While McClatchy was successful in selling its Miami real estate in the first half of 2011, the company under performed relative to revenue and EBITDA expectations for 2011, Fitch said.

With proceeds from the Miami real estate sale and cash generated from operations, the company was able to reduce debt by about $140 million in 2011 and fund $163 million into its pension plan, reducing future funding requirements, the agency said.

Fitch noted that if revenue declines re-accelerate to the high single digits in the first half of 2012, the company's outlook would likely be revised to negative.

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